ESTATE PLAN

Submitted in Partial Fulfillment of the Requirements

in Sucession (JD SUC)
for the Degree of Juris Doctor (JD)
College of Law
New Era University
New Era, Quezon City

PREPARED BY:
Dizon, Jerome M.
Piñero, Princess R.
Veloria, Charles Vincent M.

SUDMITTED TO:
Ida Marie V. Escolano-Canton

DECEMBER 2021
Table of Contents
Title Page 1
Table of Contents 2
Introduction 3

CHAPTER

I. CLIENT

Personal Profile 4
Family Tree 4
Description of Properties and Estate 5
Problems and Questions in Estate Disposition 5
Objectives of Estate Plan 5

II. HEIRS

Compulsory Heirs 6
Voluntary Heirs 7
Legatees and Devices 8

III. ESTATE AND INHERITANCE

Properties, Rights, and Obligations 9

Property Regime with Spouse 12
Collation 12
Computation of Net Hereditary Estate 14
Computation of Legitime and Free Portion 15
Division of Estate 18

IV. PLAN
Solutions to Problem, Estate Plan Strategies and Implications
Tax Computations and Implications
Forms, Documentary Requirements and Procedure
Liquidation and Charges
Administrator/Executor

V. SUMMARY, RECOMMENDATION, and CONCLUSIONS

Appendix A:

PAGE 02
INTRODUCTION
It is well settled that Estate planning is the study of a
person’s life. This is important in the future as everyone
will need this in defining and informing the people about
their rights on property acquisition. Usually, this happens
between a couple after they get into marriage. They might
include a written and a valid will.

Estate planning will help a married couple in the

disbursement of their properties after death. It will protect
the right of their loved ones in receiving their inheritance
without conflict. Thus, this makes estate planning
important in making sure that the assets we have worked
so hard during our lifetime will not be put to waste and
will be distributed to the people we care about.

A comprehensive estate planning will make us confident

about the future of our family once we depart in this
world. The silver lining is that it can help us in providing
support and financial stability of our family.

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I. CLIENT
A. PERSONAL PROFILE
Client’s Name: Florencio P. Cabalod Jr.
Age: 64 years old
Gender: Male
Date of Birth: September 3, 1957
Place of Birth: Caloocan City, Manila
Civil Status: Married
Citizenship: Filipino
Residence: Blk. 3 Lt 14 Romans Street Northcrest Village Bagumbong
Caloocan City

B. FAMILY TREE

ROSITA ELIAS MOTHER OF FATHER OF

ALMONTE ALMONTE FLORENCIO FLORENCIO

ROSENIE FLORENCIO
CABALOD CABALOD JR

LOUISE LAWRENCE LORENCE-ROSE ROEL

CABALOD CABALOD JANDOQUILE JANDOQUILE

LIVVY LILA TYLER

CABALOD CABALOD JANDOQUILE

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C. PROPERTIES & DESCRIPTION OF ESTATE

Personal Properties Real Properties

House & Lot located at Block 3

Mitsubishi Mirage 2014 lot 13 Romans Street Northcrest
registered under the name of Village Bagumbong Caloocan City
Florencio Cabalod Jr. registered under the name of
Florencio Cabalod Jr.

Hyundai Starex 2018 registered

under the name of Florencio House & Lot located at Block Lot
Cabalod Jr. 14 Romans Street Northcrest
Village Bagumbong Caloocan City
registered under the name of
Florencio Cabalod Jr.

D. PROBLEMS & QUESTIONS IN ESTATE

DISTRIBUTION

How will the properties be divided? Will it be equally divided into my heirs?

Your legitimate children (Lorence-Rose and Lawrence) are entitled to a legitime of ½ of

your hereditary estate, to be divided equally between them. The remaining ½ of the net
hereditary estate is called the free portion which is subject to the legitime of your
surviving spouse (Rosenie), your surviving spouse is entitled to a portion equal to the
legitime of each of your legitimate child. In this case, ¼ of your net hereditary estate.
After deducting the legitime of your surviving spouse, the remaining portion, which is ¼
of the net hereditary estate is called the free disposal, which can be given to strangers
and other people.

Example: Your net hereditary estate is 1,000,000.00 pesos. Lorence-Rose and Lawrence
will receive 250,000.00 pesos each while Rosenie will receive 125,000.00 pesos. The
remaining 125,000.00 pesos is considered the free portion.

Basis: Articles 888 and 892 of the New Civil Code

E. OBJECTIVES
To be able to understand the importance of estate planning.
To streamline the process of the distribution of inheritance.

2
5
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II. HEIRS
A. COMPULSORY HEIRS
Rosenie A. Cabalod - Spouse

Lorence-Rose C. Jandoquile - Child

Lawrence Niel A. Cabalod - Child

LEGAL BASIS
Article 782. An heir is a person called to the succession either by the provision of a will or
by operation of law. xxx

Article 840. Institution of heir is an act by virtue of which a testator designates in his will
the person or persons who are to succeed him in his property and transmissible rights
and obligations.

Article 887. The following are compulsory heirs:

(1) Legitimate children and descendants, with respect to their legitimate parents and
descendants;
(2) In default of the foregoing, legitimate parents and ascendants, with respect to their
legitimate children and descendants;
(3) The widow or widower;
(4) Acknowledged natural children, and natural children by legal fiction;
(5) Other illegitimate children referred to in article 287.
Compulsory heirs mentioned in Nos. 3, 4, and 5 are not excluded by those in Nos. 1 and 2;
neither do they exclude one another.
In all cases of illegitimate children, their filiation must be duly proved.
The father or mother of illegitimate children of the three classes mentioned, shall inherit
from them in the manner and to the extent established by this Code.

APPLICATION
The wife of Florencio Cabalod Jr, Rosenie Cabalod, and their children, Lorence-Rose and
Lawrence, are considered as compulsory heirs by applying the provisions of Article 887.

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 B. LEGACIES & DEVICES

Lorence-Rose C. Jandoquile - Child

Lawrence Niel A. Cabalod - Child

LEGAL BASIS
Article 782. xxx Devisees and legatees are persons to whom gifts of real and personal
property are respectively given by virtue of a will.

Article 924. All things and rights which are within the commerce of man be bequeathed or
devised.

Article 947. The legatee or devisee acquires a right to the pure and simple legacies or
devises from the death of the testator, and transmits it to his heirs.

APPLICATION

The estate of Florencio Cabalod Jr. will be distributed to his two children. His share and
participation in the house & Lot 14 with a value of Three Million Pesos (P3,000,000.00) and
in the Hyundai Starex 2018 with an estimated amount of Seven Hundred Thousand pesos
(P720,000.00) will be given to Lorence- Rose Cabalod who is the eldest.

On the flip side, his share and participation in the house & lot with the current value of
One Million and Five Hundred Thousand Pesos (P1,500,000.00) and in the Mitsubishi
Mirage 2014 with a value of Two Hundred Thousand Pesos (P260,000.00) will be given to
Lawrence Neil Cabalod who is the youngest.

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C. LEGITIME SHARES
Free Portion Lorence-Rose
25% 25%

Rosenie Lawrence Niel

25% 25%

LEGAL BASIS

Article 888. The legitime of legitimate parents or ascendants consist of one-half of the
hereditary estates of their children and descendants.

The children or descendants may freely dispose of the other half, subject to the rights of
illegitimate children and of the surviving spouse as hereinafter provided.

Article 892. If only one legitimate child or descendant of the deceased survives, the widow
or widower shall be entitled to one-fourth of the hereditary estate. In case of a legal
separation, the surviving spouse may inherit if it was the deceased who had given cause
for the same.

If there are two or more legitimate children or descendants, the surviving spouse shall be
entitled to a portion equal to the legitime of each of the legitimate children or
descendants.

In both cases, the legitime of the surviving spouse shall be taken from the portion that can
be freely disposed of by the testator.

APPLICATION
Lorence-Rose and Lawrence, as the legitimate children of Florencio Cabalod, Jr. are entitled
to a legitime of ½ of Florencio's net hereditary estate, to be divided equally between them.
The remaining ½ net hereditary estate is called the free portion which is subject to the
legitime of Florencio's surviving spouse (Rosenie), the surviving spouse is entitled to a
portion equal to the legitime of each of Florencio's legitimate child. In this case, ¼ of
Florencio's hereditary estate. After deducting the legitime of Florencio's surviving spouse,
the remaining portion, which is ¼ of the hereditary estate is called the free disposable
portion, which can be given to strangers and other people.

PAGE 08
III. ESTATE & INHERITANCE

A. PROPERTIES, RIGHTS, & OBLIGATIONS

Mitsubishi Mirage 2014 Hyundai Starex 2018

Plate Number: Plate Number:

ADA 6669 ABT 2933

Name in the Registration: Name in the Registration:

Florencio P. Cabalod Jr. Florencio P. Cabalod Jr.

Origin of Title: Origin of Title:

By Sale By Sale

Year Acquired: Year Acquired:

2014 2020

Funds Used in Acquisition: Funds Used in Acquisition:

Common Fund Common Fund

Current Estimated Value: Current Estimated Value:

260,000.00 pesos 720,000.00 pesos

Possessor: Possessor:
Florencio P. Cabalod Jr. Florencio P. Cabalod Jr.

Rights of the Possessor: Rights of the Possessor:

Owner Owner

Nature of the Property: Nature of the Property:

Transmissible Property Transmissible Property

Under Article 774 of the Civil Code, through succession, the property, rights, and
obligations (including debts) to the extent of the value of the inheritance are
transmitted from a decedent to another.

PAGE 09
 Block 3 Lot 13

Exact Adress:
Romans Street Northcrest Village Bagumbong Caloocan City

Name Appearing in the Title:

Florencio P. Cabalod Jr.

Origin of Title:
By Sale

Year Acquired:
1989

Funds Used in Acquisition:

Common Fund

Current Estimated Value:

1,500,000.00 pesos

Possessor:
Lawrence Niel A. Cabalod and his Family

Rights of the Possessor:

Mere tolerance

Nature of the Property:

Ownership over the property is a transmissible right.

Under Article 774 of the Civil Code, through succession, the property, rights, and
obligations (including debts) to the extent of the value of the inheritance are
transmitted from a decedent to another.

PAGE 10
 Block 3 Lot 14

Exact Adress:
Proverbs Street Northcrest Village Bagumbong Caloocan City

Name Appearing in the Title:

Florencio P. Cabalod Jr.

Origin of Title:
By Sale

Year Acquired:
2006

Funds Used in Acquisition:

Common Fund

Current Estimated Value:

3,000,000.00 pesos

Possessor:
Florencio Cabalod Jr. and his wife; Lorence-Rose Jandoquile and her Family

Rights of the Possessor:

As to Florencio: (as the owner of the property)
As to Lorence-Rose: (mere tolerance)

Nature of the Property:

(ownership over the property is a transmissible right)

Under Article 774 of the Civil Code, through succession, the property, rights, and
obligations (including debts) to the extent of the value of the inheritance are
transmitted from a decedent to another.

PAGE 11
B. PROPERTY REGIME WITH SPOUSE
Date of Marriage: May 10, 1986

The effectivity date of the Family Code of the Philippines is August 3, 1988. Following this,
the property regime of Spouses Florencio Cabalod Jr. and Rosenie Cabalod is governed by
the New Civil Code which was the law in force at the time of their marriage.

The pertinent part of Article 119 of the New Civil Code reads: "xxx In the absence of
marriage settlements, or when the same are void, the system of relative community or
conjugal partnership of gains as established in this Code, shall govern the property relations
between husband and wife." In relation to this, Article 105 of the Family Code provides
that the provisions of this Chapter (Chapter 4. Conjugal Partnership of Gains) shall also
apply to conjugal partnerships of gains already established between spouses before the
effectivity of this Code, without prejudice to vested rights already acquired in accordance
with the Civil Code or other laws, as provided in Article 256.

Under the regime of conjugal partnership of gains, the husband and wife place in a
common fund the proceeds, products, fruits, and income from their separate properties
and those acquired by either or both spouses through their efforts or by chance, and,
upon dissolution of the marriage or of the partnership, the net gains or benefits obtained
by either or both spouses shall be divided equally between them. (Article 106, Family
Code) Thus, all property acquired during the marriage, whether the acquisition appears to
have been made, contracted, or registered in the name of one or both spouses, is
presumed to be conjugal unless the contrary is proved. (Article 116, Family Code)

In terms of the dissolution of the property regime, Article 126 of the Family Code provides
that the conjugal partnership terminates under four instances, to wit: (1) Upon the death
of either spouse; (2) When there is a decree of legal separation; (3) When the marriage is
annulled or declared void; or (4) In case of judicial separation of property during the
marriage under Articles 134 to 138.

Upon the dissolution of the conjugal partnership, the following procedures should be
observed:

(1) An inventory shall be prepared, listing separately all the properties of the conjugal
partnership and the exclusive properties of each spouse.

(2) Amounts advanced by the conjugal partnership in payment of personal debts and
obligations of either spouse shall be credited to the conjugal partnership as an asset
thereof.

(3) Each spouse shall be reimbursed for the use of his or her exclusive funds in the
acquisition of property or for the value of his or her exclusive property, the ownership of
which has been vested by law in the conjugal partnership.

PAGE 12
(4) The debts and obligations of the conjugal partnership shall be paid out of the conjugal
assets. In case of insufficiency of said assets, the spouses shall be solidarily liable for the
unpaid balance with their separate properties, in accordance with the provisions of
paragraph (2) of Article 121.

(5) Whatever remains of the exclusive properties of the spouses shall thereafter be
delivered to each of them.

(6) Unless the owner had been indemnified from whatever source, the loss or
deterioration of movables used for the benefit of the family, belonging to either spouse,
even due to fortuitous event, shall be paid to said spouse from the conjugal funds, if any.

(7) The net remainder of the conjugal partnership properties shall constitute the profits,
which shall be divided equally between husband and wife, unless a different proportion or
division was agreed upon in the marriage settlements or unless there has been a
voluntary waiver or forfeiture of such share as provided in this Code.

(8) The presumptive legitimes of the common children shall be delivered upon the
partition in accordance with Article 51.

(9) In the partition of the properties, the conjugal dwelling and the lot on which it is
situated shall, unless otherwise agreed upon by the parties, be adjudicated to the spouse
with whom the majority of the common children choose to remain. Children below the age
of seven years are deemed to have chosen the mother, unless the court has decided
otherwise. In case there is no such majority, the court shall decide, taking into
consideration the best interests of said children. (Article 129, Family Code)

If the termination of the conjugal partnership is by reason of the death of one spouse or
both, the conjugal partnership property shall be liquidated in the same proceeding for the
settlement of the estate of the deceased.

C. COLLATION
LEGAL BASIS
Every compulsory heir, who succeeds with other compulsory heirs, must bring into the
mass of the estate any property or right which he may have received from the decedent,
during the lifetime of the latter, by way of donation, or any other gratuitous title, in order
that it may be computed in the determination of the legitime of each heir, and in the
account of the partition. (Article 1061, New Civil Code)

APPLICATION
Florencio Cabalod Jr. did not donate any property nor did he become a donee.

PAGE 13
D. COMPUTATION OF NET HEREDITARY ESTATE

FORMULA:

Net Hereditary Estate = Value of All Properties -

Debts and Charges + Collationable Donations

Value of the properties:

Personal Property - 490,000.00 pesos
Real Property - 2,250,000.00 pesos

Value of the debts and charges:

Debts: None
Charges: 100,000.00 pesos
(Estimated funeral expenses)

Value of collationable donations:

None

COMPUTATION

2,740,000.00

100,000.00

2,640,000.00 pesos
(net hereditary estate)

LEGAL BASIS
Article 908. To determine the legitime, the value of the property left at the death of the
testator shall be considered, deducting all debts and charges, which shall not include
those imposed in the will.

To the net value of the hereditary estate, shall be added the value of all donations by the
testator that are subject to collation, at the time he made them.

PAGE 14
E. COMPUTATION OF LEGITIME & FREE PORTION

Children - Lawrence Cabalod & Lorence – Rose Jandoquile

Net Hereditary Estate Php 2,640,000.00
Multiply: Legitime of Legitimate Children (%) 50%
Legitime of Children (Amount) Php 1,320,000.00
Divide: Number of Children 2

Legitime per Child Php 660, 000.00

Add: Free Portion Share (Php 660,000/3) - Default Php 220,000.00

Total Share in Hereditary Estate per Child Php 880, 000.00

LEGAL BASIS
Article 888. The legitime of legitimate children and descendants consists of one-half of the
hereditary estate of the father and of the mother. xxx

APPLICATION
Lorence - Rose and Lawrence, as the legitimate children of Florencio Cabalod, Jr. are
entitled to a legitime of ½ of Florencio's net hereditary estate, to be divided equally
between them. Thus, the net hereditary estate, which is worth Php 2,640,000.00 should be
multiplied by 50% to get the legitime of children, which is Php 1,320,000.00. From the
legitime of children it should be divided by 2, the number of children, to get the legitime
per child, which is Php 660,000.00.

The free disposable portion of the net hereditary estate is Php 660,000.00. In default, it
should be divided equally among the compulsory heirs. Hence, the free disposable portion
of the net hereditary estate should be divided by 3, the number of compulsory heirs, to get
the share of each compulsory heir in the free disposable portion of the net hereditary
estate, which is Php 220,000.00.

To get the share in hereditary estate per Child, the legitime of each child, which is Php
660,000.00 and the share of each compulsory heir in the free disposable portion of the net
hereditary estate, which is Php 220,000.00 should be added together. Thus, the share in
hereditary estate per Child is Php 880,000.00.

PAGE 15
Spouse - Rosenie Cabalod

Net Hereditary Estate Php 2,640,000.00

Equal to the legitime of each of the legitimate children (660,000.00)*

Legitime of Spouse (Amount) Php 660, 000.00

Add: Free Portion Share (Php 660,000/3) - Default Php 220,000.00

Total Share in Hereditary Estate of Spouse Php 880, 000.00

LEGAL BASIS
Article 888. xxx If there are two or more legitimate children or descendants, the surviving
spouse shall be entitled to a portion equal to the legitime of each of the legitimate children
or descendants.

APPLICATION
Rosenie Cabalod, as the surviving spouse of Florencio Cabalod, Jr. is entitled to a portion
equal to the legitime of each of the legitimate children, which is Php 660,000.00. Thus,
Rosenie Cabalod legitime is Php 660,000.00.

The free disposable portion of the net hereditary estate is Php 660,000.00 In default, it
should be divided equally among the compulsory heirs. Hence, the free disposable portion
of the net hereditary estate should be divided by 3, the number of compulsory heirs, to get
the share of each compulsory heir in the free disposable portion of the net hereditary
estate, which is Php 220,000.00.

To get the share in net hereditary estate of the spouse the legitime of spouse, which is Php
660,000.00 and the share of each compulsory heir in the free disposable portion of the net
hereditary estate, which is Php 220,000.00 should be added together. Thus, the share in
the net hereditary estate of Rosenie is Php 880,000.00.

*See page 15 for the computation of legitimate children's hereditary estate.

PAGE 16
Free Disposable Portion
Net Hereditary Estate Php 2,640,000.00
Deduct: Legitime of Children (1,320,000.00)*
Deduct: Legitime of Spouse (660,000.00)**

Free Disposable Portion Php 660, 000.00

LEGAL BASIS
Article 888. xxx If there are two or more legitimate children or descendants, the surviving
spouse shall be entitled to a portion equal to the legitime of each of the legitimate children
or descendants.

APPLICATION
The Free disposable Portion of the net hereditary estate is the portion of the net
hereditary estate after deducting the Legitime. Thus, Florencio's net hereditary estate of
Php 2,640,000.00 after deducting the legitime of children (Php 1,320,000.00) and legitime
of Spouse (Php 660,000.00) will give the free disposable portion of the net hereditary
estate, which is Php 660,000.00.

*See page 15 for the computation of legitimate children's hereditary estate.

**See page 16 for the computation of spouse's hereditary estate.

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F. DIVISION OF ESTATE

House and Lot 14

Current Value of the Property Php 3,000,000.00

Deduct: Conjugal Share of the Spouse 1,500,000.00

Part of the Estate of the Deceased Php 1,500,000.00

Devisee: Lorence-Rose (Daugther) Php 750,000.00

Surviving Spouse: Rosenie (Wife) 750,000.00

Share in Co-ownership

Lorence-Rose
25%

Conjugal Share (Rosenie)

50%

Rosenie
25%

Florencio gives and bequeaths his share in House and Lot 14 to his Daughter (Lorence-
Rose) and surviving spouse (Rosenie) equally. The House and Lot 14 is a conjugal property
of spouses Florencio and Rosenie, thus, one half (1/2) of the interest in the property
belongs to Florencio and the other half belongs to Rosenie.

Consequently, upon the death of Florencio, Rosenie and Lorence-Rose will co-own the
House and lot 14. Rosenie, as the surviving spouse, will own the 75% interest of the house
and lot 14 (50% interest as one of the conjugal owners of the property and 25% as a
compulsory heir) and the remaining 25% interest will be owned by Lorence (as one of the
named devisees of Florencio).

PAGE 18
House and Lot 13

Current Value of the Property Php 1,500,000.00

Deduct: Conjugal Share of the Spouse 750,000.00

Part of the Estate of the Deceased Php 750,000.00

Devisee: Lawrence Niel (Son) Php 750,000.00

Share in Co-ownership

Lawrence Niel Conjugal Share (Rosenie)

50% 50%

Florencio gives and bequeaths his share in house and lot 13 to his Son (Lawrence Niel).
The House and Lot 13 is a conjugal property of spouses Florencio and Rosenie, thus, one
half (1/2) of the interest in the property belongs to Florencio and the other half belongs to
Rosenie.

Consequently, upon the death of Florencio, Rosenie and Lawrence will co-own the House
and lot 13. Rosenie, as the surviving spouse, will own the 50% interest of the house and lot
13 (50% interest as one of the conjugal owners of the property) and the remaining 50%
interest will be owned by Lawrence (50% as one of the named devisees of Florencio).

PAGE 19
Mirage (2014)

Current Value of the Property Php 260,000.00

Deduct: Conjugal Share of the Spouse 130,000.00

Part of the Estate of the Deceased Php 130,000.00

Legatee: Lawrence Niel (Son) Php 130,000.00

Share in Co-ownership

Lawrence Niel Conjugal Share (Rosenie)

50% 50%

Florencio gives and bequeaths his share in Mirage (2014) to his Son (Lawrence). The
Mirage (2014) is a conjugal property of spouses Florencio and Rosenie, thus, one half (1/2)
of the interest in the property belongs to Florencio and the other half belongs to Rosenie.

Consequently, upon the death of Florencio, Rosenie and Lawrence will co-own the Mirage
(2014). Rosenie, as the surviving spouse, will own the 50% interest of the Mirage (2014)
(50% interest as one of the conjugal owners of the property) and the remaining 50%
interest will be owned by Lawrence (50% as one of the named legatees of Florencio).

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Starex (2020)

Current Value of the Property Php 720,000.00

Deduct: Conjugal Share of the Spouse 360,000.00

Part of the Estate of the Deceased Php 360,000.00

Legatee: Lorence-Rose (Daugther) Php 130,000.00

Surviving Spouse: Rosenie (Wife) 130,000.00

Share in Co-ownership
Funeral Expenses
13.9%

Lorence-Rose
18.1% Conjugal Share (Rosenie)
50%

Rosenie
18.1%

Florencio gives and bequeaths his share in Starex (2020) to his Daughter (Lorence - Rose),
Son (Lawrence) and surviving spouse (Rosenie). The Starex (2020) is a conjugal property of
spouses Florencio and Rosenie, thus, one half of the interest in the property belongs to
Florencio and the other half belongs to Rosenie.

Consequently, upon the death of Florencio, Rosenie and Lorence-Rose will co-own the
Starex (2020). Rosenie, as the surviving spouse, will own the 68.1% interest of the house
and lot 14 (50% interest as one of the conjugal owners of the property and 18.1% as
compulsory heir), 18.1% of the interest will be owned by Lorence-Rose (18.1% as one of
the named legatees of Florencio), and the remaining 13.9 % interest will be used for
funeral expense.

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IV. PLAN

SOLUTIONS TO PROBLEMS, ESTATE PLAN

STRATEGIES & IMPLICATIONS

TAX COMPUTATIONS & IMPLICATIONS

PAGE 10
FORMS, DOCUMENTARY REQUIREMENTS &
PROCEDURE

LIQUIDATION & CHARGES

ADMINISTRATOR/EXECUTOR

PAGE 11
V. SUMMARY,
RECOMMENDATIONS,
CONCLUSIONS

PAGE 12